92
92
Dec 12, 2012
12/12
by
CNBC
tv
eye 92
favorite 0
quote 0
today was all about the fed. a rally was up 80 points on the dow at one time until midday when bernanke had his news conference and took all the wind out of the sales. down three points at 13,245. that does it for "the closing bell." >> "fast money" starts right now and i do believe maria is back tomorrow. >> she will be. see you tomorrow. >>> traders get what they wanted. >> if unemployment never goes below 6.5% again, we're going to have a quarter percent forever. >> so, now it's a race to see who can buy more lumber futures for printing currency between the japanese and the americans. >> but chairman bernanke is a buzz kill for stocks today. >> the asset purchases are a less well understood tool. we have -- we'll be learning over time about how every cautious they are, about what costs they may carry with them in terms of untended consequences. >> and we're back to worrying about a thelma and louise finish to the fiscal cliff. maybe that wouldn't presidentbeo so bad. >> when the government does things, it usua
today was all about the fed. a rally was up 80 points on the dow at one time until midday when bernanke had his news conference and took all the wind out of the sales. down three points at 13,245. that does it for "the closing bell." >> "fast money" starts right now and i do believe maria is back tomorrow. >> she will be. see you tomorrow. >>> traders get what they wanted. >> if unemployment never goes below 6.5% again, we're going to have a...
59
59
Dec 16, 2012
12/12
by
CSPAN
tv
eye 59
favorite 0
quote 0
the fed can change that as well and unwind the bank's willingness to swap arrangements with the fed. but just the runoff would allow the fed very, very quickly, to reduce their balance sheet if they so chose. as rudy pointed out, as david pointed out, right now, in terms of keeping the economy going, the feds like the only ballgame in town and what they're really trying to do, not so much is create lending by the banks at the retail and local and business level. we're trying to recapitalize the banks and providing tarp 2 by subsidizing the bank that they engage in and as i said, it's about a $35 billion subsidy a year. i think that's an issue that's outside the issue that we've talked about here. and in this one, for many other seminar on the fed policy. we could really start an argument on that one. >> i would suggest that the law that they pass in new york did include one of the provisions i said. no retroactive pay so in other words, they might be able to borrow money for cash flows but they lose the money forever. >> a couple of points on the fed. i wouldn't worry about the capit
the fed can change that as well and unwind the bank's willingness to swap arrangements with the fed. but just the runoff would allow the fed very, very quickly, to reduce their balance sheet if they so chose. as rudy pointed out, as david pointed out, right now, in terms of keeping the economy going, the feds like the only ballgame in town and what they're really trying to do, not so much is create lending by the banks at the retail and local and business level. we're trying to recapitalize the...
24
24
tv
eye 24
favorite 0
quote 0
should raise interest rates to an outrageous level no i'm not saying that at all i'm saying the fed should step back stop manipulating interest rates let the free market determine what level is a sensible level to clear out past malinvestment just stimulate savings in a raise the savings rate and to rebuild the capital stock using new technology human ingenuity and move forward in a real way the way that america used to well that's pretty well set i can't really argue with you too much there when we talk about the antidote to the fed's manipulation of the economy of prices into their money printing some people say hey her as he needs to be tethered and some people suggest a commodity or gold earlier in this week i was talking to barry eichengreen he's an author of golden fetters he's author of exorbitant privilege also a professor at u.c. berkeley now that interview you watching you were fired up about it so first here's why he said that gold could not be a reserve currency let's take a lesson. about. gold doesn't really have the liquidity that importers and exporters and financial
should raise interest rates to an outrageous level no i'm not saying that at all i'm saying the fed should step back stop manipulating interest rates let the free market determine what level is a sensible level to clear out past malinvestment just stimulate savings in a raise the savings rate and to rebuild the capital stock using new technology human ingenuity and move forward in a real way the way that america used to well that's pretty well set i can't really argue with you too much there...
129
129
Dec 12, 2012
12/12
by
KQEH
tv
eye 129
favorite 0
quote 0
i think most people expect exactly what eric miller was talking about from the fed. and bern bueno ben bernanke hasn transparent and telling people well in advance what he is going to do. the $85 billion should continue building up for our taxpayers balance sheet. >> susie: how does all of this play out in the markets. all of the bond buying, companies are still holding off from hiring and spending, and now the risk, possibly of a recession. how does it play out in the markets for 2013? >> what has happened, with all of this cash going into the market -- into the economy, not only from the u.s. fed, but from europe, from the central bank there, as well as from china, don't forget, so we've had this liquidity which has taken asset prices with the stock market and the bond markets, pricing it way up, it is actually helping housing after a long wait. moving into the future, there will be some reduction in really the fear that people have. it is not only a lack of confidence, but it is a fear of things going wrong. as we get day to day, i think the fed has been the only
i think most people expect exactly what eric miller was talking about from the fed. and bern bueno ben bernanke hasn transparent and telling people well in advance what he is going to do. the $85 billion should continue building up for our taxpayers balance sheet. >> susie: how does all of this play out in the markets. all of the bond buying, companies are still holding off from hiring and spending, and now the risk, possibly of a recession. how does it play out in the markets for 2013?...
15
15
tv
eye 15
favorite 0
quote 0
is that the fed's change from the fed change from time interest rate guidance to a date to saying this the fed currently anticipates that the exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above six percent and inflation between one and two years ahead is projected to be no more than a half percentage point above the committee's two percent longer run goal a fancy way for saying to two and a half or cent and longer term inflation expectations continue to be well anchored so they're tying the guidance now to economic data so that's a big shift a big change to talk about what all of this means especially in the context of remember global currency wars which he has been talking about for so much longer way before it became in fashion to do so jim rickards is here author of tangent capital partners or excuse me capital partners author of currency wars the book you see there and really the man to talk about the fed with on a day like today so jim rickards thanks so much for being here thank you are great to be here ye
is that the fed's change from the fed change from time interest rate guidance to a date to saying this the fed currently anticipates that the exceptionally low range for the federal funds rate will be appropriate at least as long as the unemployment rate remains above six percent and inflation between one and two years ahead is projected to be no more than a half percentage point above the committee's two percent longer run goal a fancy way for saying to two and a half or cent and longer term...
111
111
Dec 1, 2012
12/12
by
CSPAN2
tv
eye 111
favorite 0
quote 0
the fed typical intense fies the program what we need to do is roll back the fed as well. the conventional wisdom surrounding the fed is dead
the fed typical intense fies the program what we need to do is roll back the fed as well. the conventional wisdom surrounding the fed is dead
74
74
Dec 12, 2012
12/12
by
CSPAN
tv
eye 74
favorite 0
quote 0
the fed is the onlythe fed has to change its policy unsustainable over time. >> right. >> one of the most successful physical consolidations in the developed, democratic world in canada, in the mid 1990's, and i ask the canadian politicians how did you do it? the public went from cheering on spending to deficits within a matter of a year or two. the government in canada now risks some peril if they do not balance their budget. the answer you most frequently get is all they had to do was say, 40% of revenues was going to pay the interest bill on the canadian debt, and the public immediately realized that was not a great idea. we cannot make that argument. we run these massive deficits and because interest rates have gone down, the interest bill has barely moved at all. that. even with the modest projections in terms of the interest rate increases they see over time, we are going to quadruple our interest bill in 10 years. hopefully, that will get attention. i almost regret the fact markets have not reacted more negatively to what we are doing than they have. >> if you are looking at $
the fed is the onlythe fed has to change its policy unsustainable over time. >> right. >> one of the most successful physical consolidations in the developed, democratic world in canada, in the mid 1990's, and i ask the canadian politicians how did you do it? the public went from cheering on spending to deficits within a matter of a year or two. the government in canada now risks some peril if they do not balance their budget. the answer you most frequently get is all they had to do...
113
113
Dec 12, 2012
12/12
by
FBC
tv
eye 113
favorite 0
quote 0
but a new change, a new roll see, that is the economy does x the fed will do y, in this case the fed said it will keep interest rates low for car loans, and mortgages and business loans until, at least until unemployment hits 6.5%, that is the first time that we've seen the fed do this kind of thing in its hundred year history. >> he did couch it a little, my decision was. well what if we get that 6.5%. >> that right, labor force participation rate, how many people who go into the labor force, and actually look for a job verse those who drop out, he addressed that, he said this is a guideline, we're not going to make this hard and fast. we'll look at other things like, payroll hours, and pay and wages, and the number of people who are dropping in and out of the workforce, when we look at this, so he anticipated that criticism. and tried to address it. tracy: but saying there is a lot of wiggle room with the variables they just added. >> but still the idea is to give people more certainty about what they can expects from the fed. and will technical terms, a respond function, how will
but a new change, a new roll see, that is the economy does x the fed will do y, in this case the fed said it will keep interest rates low for car loans, and mortgages and business loans until, at least until unemployment hits 6.5%, that is the first time that we've seen the fed do this kind of thing in its hundred year history. >> he did couch it a little, my decision was. well what if we get that 6.5%. >> that right, labor force participation rate, how many people who go into the...
20
20
tv
eye 20
favorite 0
quote 0
what does that say about the fed culture about the fed kind of isolation from everybody else. well again if you go back historically there was a time when you know f o m c decisions were not communicated at all that they just sort of were drip fed into the markets and as you said you know chairman greenspan was was notoriously unclear i think you know ben bernanke has made tremendous progress this way. but it is it goes a bit against the legacy culture within within the fed and every organization has its culture and its means of communicating there is a formality to the the the fed culture the fed style it is a bit self serious and and. not compared to some other central banks but certainly compared to if you look at mark carney is now moving to the bank of england where you know the media environment around the central bank is is fairly it's not adversarial certainly in gauged and so it's you know as we move towards these less and less formal environments it's going to be incumbent on the fed to really fight against that legacy culture and get out there and get the message ac
what does that say about the fed culture about the fed kind of isolation from everybody else. well again if you go back historically there was a time when you know f o m c decisions were not communicated at all that they just sort of were drip fed into the markets and as you said you know chairman greenspan was was notoriously unclear i think you know ben bernanke has made tremendous progress this way. but it is it goes a bit against the legacy culture within within the fed and every...
34
34
tv
eye 34
favorite 0
quote 0
allegedly continue trying to boost the economy to help with that weak growth we keep saying but is the fed's manipulation of interest rates and involvement in the economy actually doing the opposite to growth is it hurting growth to lay it out john butler is here he's founder of m four a capital and author of the book you see here the golden revolution and he is here to spell it out so first of all mr butler thank you for being on the show thank you learned a pleasure yeah it's always a pleasure and i want to start with this fascinating chart because this is something that you included in your recent writing and it is really a last word to have ok it is a u.s. domestic investment net of depreciation so essentially as you explained it to me this shows that businesses aren't investing enough to keep up with how the country's capital stock is depreciating it sounds alarming but what exactly does this mean. well it means that growth in the future that is not just cyclical you but structurally that is potential growth is going to be weaker now the capital stock is the engine is the factory is the
allegedly continue trying to boost the economy to help with that weak growth we keep saying but is the fed's manipulation of interest rates and involvement in the economy actually doing the opposite to growth is it hurting growth to lay it out john butler is here he's founder of m four a capital and author of the book you see here the golden revolution and he is here to spell it out so first of all mr butler thank you for being on the show thank you learned a pleasure yeah it's always a...
214
214
Dec 17, 2012
12/12
by
CNBC
tv
eye 214
favorite 0
quote 0
what the fed did. did the economy actually react to all that? >> absolutely. >> so we would have -- is it a counterfactual or it did get better? it didn't get worse. it's pretty good. >> look, you know what i hear? it's amazing how many people said the money didn't matter. the fed didn't matter. they shouldn't have done this. they shouldn't have done it to begin with. the fact of the matter is you have incredible, we're just talking about the credit markets. i can tell you what the credit markets were then. ivory coast was nine. these credit markets are anything but robust. they are robust. they are absolutely robust right now. and not just the credit markets in the marketplace. in auto loans, you're now seeing subprimes, sensible subprimes. because you should do some subprime in auto loans. sensible. that is getting done. that's why you're seeing -- >> the deleverage. but the economy itself -- >> is sub2%. >> but you still have other things that can happen. and now the thing holding back the economy,
what the fed did. did the economy actually react to all that? >> absolutely. >> so we would have -- is it a counterfactual or it did get better? it didn't get worse. it's pretty good. >> look, you know what i hear? it's amazing how many people said the money didn't matter. the fed didn't matter. they shouldn't have done this. they shouldn't have done it to begin with. the fact of the matter is you have incredible, we're just talking about the credit markets. i can tell you...
215
215
Dec 12, 2012
12/12
by
CNBC
tv
eye 215
favorite 0
quote 1
as if the fed needed more distrust among fed watchers, right? >> i havend the privilege last r of going to a dinner with fisher, who is crucial -- you look at the diagram. this is just an alumni association that has allowed other people in. this is an m.i.t. thing. fisher is regarded as being the man who saved east asia in the '90s. you know, these guys have been more than upfront that there's a club. i think it's just being written about for the first time. >> yeah. mark, the consensus is $45 billion in monthly purchases of treasuries. that's what's expected. if we don't get that, a lot of market analysts believe that the markets will be extremely disappointed. this off of a string of gains. the first five-day winning streak for the dow since march. the dow, in fact, is at, what, the highest level since october 22nd. s&p the highest level since november 6th, which, of course, was the election. we've been levitating higher that the fed will be there and the cliff deal will be reached. interesting. >> the papers read, as if we're about to have a
as if the fed needed more distrust among fed watchers, right? >> i havend the privilege last r of going to a dinner with fisher, who is crucial -- you look at the diagram. this is just an alumni association that has allowed other people in. this is an m.i.t. thing. fisher is regarded as being the man who saved east asia in the '90s. you know, these guys have been more than upfront that there's a club. i think it's just being written about for the first time. >> yeah. mark, the...
22
22
tv
eye 22
favorite 0
quote 0
so that's his view i said government i should have said fed and i should mention the fed may also be trying to prop up asset prices to avoid a deflationary to leverage that is so painful so that's another commonly given reason now with first said to us sort of you are new to just how to thought when the fed makes future announcements someone from capital account should be in the press gallery to ask questions well with first another dear viewers have i got news for you take a look at this video see that red head in the background looking very astute that has our own segment producer just seen underhill she wasn't called on this time to ask her question but just you wait we will keep sending her until she gets a question in and in response to our discussion with eric sprott earlier this week for britain's stallions said why so nice to eric sprott and so incredibly rude and disrespectful to peter schiff who was a guest we had on last week. i do not know what people think would be disrespectful or rude about my interview with peter schiff it was a very fair interview yes we asked peter
so that's his view i said government i should have said fed and i should mention the fed may also be trying to prop up asset prices to avoid a deflationary to leverage that is so painful so that's another commonly given reason now with first said to us sort of you are new to just how to thought when the fed makes future announcements someone from capital account should be in the press gallery to ask questions well with first another dear viewers have i got news for you take a look at this video...
32
32
tv
eye 32
favorite 0
quote 0
the whole according to famous economist leunig misses it's very counterproductive and i believe the fed is directly contributing to this capital consumption by keeping interest rates artificially low so that there is little incentive to say and the lack of savings implies a lack of investment not even enough reinvestment to cover for depreciation that's what's happening here the fed doesn't even seem to acknowledge it or realize it well i think that's very interesting because the percepts in is that what the fed is doing is it's doing it to strengthen the economy to help boost growth but you're saying in fact it is directly because of the fed that this dynamic is going on that we just saw the depreciation and investment and so you're saying that actually they are responsible for further depressed growth down the line. well they're partially responsible i mean don't get me wrong there are a number of structural issues with the u.s. economy i don't want to assign one hundred percent of blame to the head but it's a nuff boy that the feds certainly needs to reevaluate what it's doing and to
the whole according to famous economist leunig misses it's very counterproductive and i believe the fed is directly contributing to this capital consumption by keeping interest rates artificially low so that there is little incentive to say and the lack of savings implies a lack of investment not even enough reinvestment to cover for depreciation that's what's happening here the fed doesn't even seem to acknowledge it or realize it well i think that's very interesting because the percepts in is...
129
129
Dec 9, 2012
12/12
by
WUSA
tv
eye 129
favorite 0
quote 0
let's look at how it went down this afternoon at fed ex field. rg3 coming out of the tunnel for his first beltway battle. here's play you will see over and over and over again. rgiii scrambling trying to make a play when he is hit in the knee. he was knocked out of the game and he was unable a finish the drive despite trying. but this is why the redskins drafted kirk cousins. cousins finishing off the drive with a touchdown pass to pierre. and fresh off the bench that forces overtime and mr. automatic after a long punt return this kid is special. forebath 11 for 11 on field goal attempts. redskins stun the ravens 31-28. dave owens has been out at fed ex field all day and joins us now live from landover. dave, i bet that crowd was rocking out there this afternoon. >> reporter: yeah, kb, 81,000 plus here at fed ex field they were almost going to blow the roof off a this place no doubt about that. if there was a roof. you know what i am getting at. i will tell you what i don't remember a better game here at fed ex field and i been here for 4 plus ye
let's look at how it went down this afternoon at fed ex field. rg3 coming out of the tunnel for his first beltway battle. here's play you will see over and over and over again. rgiii scrambling trying to make a play when he is hit in the knee. he was knocked out of the game and he was unable a finish the drive despite trying. but this is why the redskins drafted kirk cousins. cousins finishing off the drive with a touchdown pass to pierre. and fresh off the bench that forces overtime and mr....
223
223
Dec 13, 2012
12/12
by
CNBC
tv
eye 223
favorite 0
quote 0
balance sheet, $800 billion because it's the fed. at the end of next year, based on what bernanke said today, that balance sheet is going to be $4 trillion. it is absolutely extraordinary with the zero interest rate and all the money they're creating. now john tamny, i know the federal can produce money and destroy the dollar, but the federal can't produce jobs, can't produce which is investment, can't produce prosperity because if they could, it would have happened already. that's the problem i'm having with this whole business with bernanke. why hasn't it happened already? >> exactly. wouldn't life be easy if the path to job growth were were just creating dollars the reality is the fed's program is going to do the opposite of create jobs. think about it, what do investors do when they invest in future companies? they're buying future dollar income streams. the fed's very actions are telling investors you'd be a fool to commit capital to new ideas because if you're lucky enough to get returns down the line, they'll come back and che
balance sheet, $800 billion because it's the fed. at the end of next year, based on what bernanke said today, that balance sheet is going to be $4 trillion. it is absolutely extraordinary with the zero interest rate and all the money they're creating. now john tamny, i know the federal can produce money and destroy the dollar, but the federal can't produce jobs, can't produce which is investment, can't produce prosperity because if they could, it would have happened already. that's the problem...
87
87
Dec 13, 2012
12/12
by
CSPAN
tv
eye 87
favorite 0
quote 0
is that the policy the fed is following? secondly, you referred to a number of inflation forecasts in your introductory remarks. how will we ever know that the inflation threshold has been hit? >> the kind of optimal policy path that vice chairman yellin showed is indicative of the kind of scenario is we have run. the general character of the interest rate path, that it stays below until unemployment is in the vicinity of 6.5% or lower and then rises relatively slowly which goes back to the question asked earlier that it does not involve a rapid removal of accommodation after that is reached. that is consistent with that kind of analysis and that is the type of analysis that is not the only thing we looked at but was informative and our discussion. in that kind of policy path of the type she discussed, you notice that inflation stays close to 2%. in terms of the inflation forecast, what the committee will do on a regular basis is include in its statement, its views of where inflation is likely to be one year from now. for ex
is that the policy the fed is following? secondly, you referred to a number of inflation forecasts in your introductory remarks. how will we ever know that the inflation threshold has been hit? >> the kind of optimal policy path that vice chairman yellin showed is indicative of the kind of scenario is we have run. the general character of the interest rate path, that it stays below until unemployment is in the vicinity of 6.5% or lower and then rises relatively slowly which goes back to...
198
198
Dec 13, 2012
12/12
by
CNBC
tv
eye 198
favorite 0
quote 0
>> i think you don't fight the fed. i think what happened yesterday is a little bit more of the same we had this year which is the fed is going to try to keep interest rates low until it moves people off the risk spectrum which means between bonds and equities we still favor equities. >> isn't it interesting, ed, that you've got the federal reserve now targeting an unemployment report rate in terms of moving on interest rates. 6.5% is the number, you know, that was spoken about so much yesterday. it that change your investment position in any way? >> no. i mean, it's pretty -- it's pretty simple to understand what you need to do. you need to buy equities if you're going to be real focused. look at equities with a little bit of a china exposure because china is starting to bottom a little bit, we think, so that's where i would focus. the number one thing and the greatest clarity i have in 26 years in this business, stay away from interest rate sensitive bonds and stay away from bond funds, and that's what you need to be
>> i think you don't fight the fed. i think what happened yesterday is a little bit more of the same we had this year which is the fed is going to try to keep interest rates low until it moves people off the risk spectrum which means between bonds and equities we still favor equities. >> isn't it interesting, ed, that you've got the federal reserve now targeting an unemployment report rate in terms of moving on interest rates. 6.5% is the number, you know, that was spoken about so...
226
226
Dec 13, 2012
12/12
by
KRCB
tv
eye 226
favorite 0
quote 0
participants are buying dollars due to receding worries after the fed's action. they are hoping the bank of japan will take action at its upcoming policy meeting next week. euro yen quoted at 108.22 to 99. japan's nikkei average went above 9700 at one point. a weaker yen and the u.s. fed's policy decision that's what's lifting a wide range of issues here in tokyo. let's take a look at other asian markets open now. we are seeing seoul's kospi up and over in australia the benchmark is trading unchanged at 4,583. we'll see where trading takes us throughout the rest of the day. greece is buying back bonds. it exceeds the 30 billion euro target. greece had been seeking investors willing to accept at 30 to 40% of the bond's face value. the program is designed to reduce the debt burden. analysts estimate greece will be able to shave about 20 billion euro's off its debt. this will clear the way for greece to receive a new infusion ofore th bilon eos in aid from the eu and other principal lenders. the organization of petroleum export and countries held a general meeting i
participants are buying dollars due to receding worries after the fed's action. they are hoping the bank of japan will take action at its upcoming policy meeting next week. euro yen quoted at 108.22 to 99. japan's nikkei average went above 9700 at one point. a weaker yen and the u.s. fed's policy decision that's what's lifting a wide range of issues here in tokyo. let's take a look at other asian markets open now. we are seeing seoul's kospi up and over in australia the benchmark is trading...
319
319
Dec 14, 2012
12/12
by
CNBC
tv
eye 319
favorite 0
quote 0
this is ben bernanke's fed. its his legacy going forward, and then we leave the table and we're still friends. so, can i sell it to you? i can't sell it with passion. but i will say that this is action in a city called washington, or sometimes in texas we call it washington-stand where people never get anything done or don't appear to be easily able to get things done. we do get things done. we make a decision and we proceed. >> i think that's one thing you can say about the fomc and this leader's chairmanship. we're going in new direction. the question is, is the efficacy of what we're doing solid or not? we'll continue to examine that. and if it's not, we're going to have to change course. it's the best i can tell you, joe. >> i understand. i understand. and you're a reasonable, calm, conciliatory, collegial, the fed is very collegial. but i would -- >> that's right. >> -- at some point wonder whether you might just snap? because you've been on in the past, with much less significant, and much less -- much sma
this is ben bernanke's fed. its his legacy going forward, and then we leave the table and we're still friends. so, can i sell it to you? i can't sell it with passion. but i will say that this is action in a city called washington, or sometimes in texas we call it washington-stand where people never get anything done or don't appear to be easily able to get things done. we do get things done. we make a decision and we proceed. >> i think that's one thing you can say about the fomc and this...
190
190
Dec 13, 2012
12/12
by
FBC
tv
eye 190
favorite 0
quote 0
chairman and the fed, that is the unemployment rate they want to hit, i have never heard of the fed doing this before. have you? >> no, this is -- there is a danger for fed being so specific. in a particular number, what we've seen, in the last two years, is that the unemployment rate has dropped, for whatever reason, by a 1% each year, that means 7. searc 7 we could be 6.n one year, is that is far ahead of between 15 -- the 2015 in the marketplace. lou: terrible thing about that is and would be, it would be the result of more people leaving the labor force, rather than more jobs, and we need literally millions of those jobs to be created. so, the program, the mortgage-backed program staying in place, and 45 million of treasury ire a month, your assessment of the impact there? what will it mean to the economy and the markets? >> well the basic change that we see, is in compared to operation twist, now fed is a net buyer of treasures, their balance sheet will increase about a trillion dollars over the next year that is very much unchartered waters, but it means more liquidity in the
chairman and the fed, that is the unemployment rate they want to hit, i have never heard of the fed doing this before. have you? >> no, this is -- there is a danger for fed being so specific. in a particular number, what we've seen, in the last two years, is that the unemployment rate has dropped, for whatever reason, by a 1% each year, that means 7. searc 7 we could be 6.n one year, is that is far ahead of between 15 -- the 2015 in the marketplace. lou: terrible thing about that is and...
23
23
tv
eye 23
favorite 0
quote 0
treasury for its borrowing needs have been the result of the fed's gracious appetite for fixed income securities in the past four years that yields have been if this rated by fed policy there is no question the only question for us is if this is the result of fed policy past or present in other words is it the seemingly obvious presence of the fed in the bond market today as the major buyer of uncle sam's ious which is keeping rates low or was it the fed's accommodative monetary policy during the boom years and the subsequent urged by the private sector to relieve itself of overpriced assets in the bust that has kept yields from rising in either case we find fault with the fed for if yields were kids we would be a little worried about this. well and the thompson kids too they're about to speak there in the backyard threw them out with the trash. at the door. i guess we would call it honey i shrunk the yield curve only in this scenario policy wonks in control of the shrink ray as the particle eviscerate are used by rick moran of his character was actually called seem hardly concerned a
treasury for its borrowing needs have been the result of the fed's gracious appetite for fixed income securities in the past four years that yields have been if this rated by fed policy there is no question the only question for us is if this is the result of fed policy past or present in other words is it the seemingly obvious presence of the fed in the bond market today as the major buyer of uncle sam's ious which is keeping rates low or was it the fed's accommodative monetary policy during...
36
36
tv
eye 36
favorite 0
quote 0
obvious presence of the fed in the bond market today as the major buyer of uncle sam's ious which is keeping rates low or was it the fed's accommodative monetary policy during the boom years and the subsequent urged by the private sector to relieve itself of overpriced assets in the bust that has kept yields from rising in either case we find fault with the fed for if yields were kids we would be a little worried about this. what the thomson kids to they're about this big there in the backyard through the boat with the trying. to grow up at the door . i guess we would call it honey i shrunk the yield curve only in this scenario policy wonks in control of the shrink ray as the particle eviscerate are used by rick moran of his character was actually called seem hardly concerned about our new microscopic interest rates if anything the lower they go the more the fed may print forcing a new class of indentured investor out to scavenge for more yield in the front lawn fortunately for us our next guest is now used to viewing fed policy with a microscopic microscope bimonthly in his latest i
obvious presence of the fed in the bond market today as the major buyer of uncle sam's ious which is keeping rates low or was it the fed's accommodative monetary policy during the boom years and the subsequent urged by the private sector to relieve itself of overpriced assets in the bust that has kept yields from rising in either case we find fault with the fed for if yields were kids we would be a little worried about this. what the thomson kids to they're about this big there in the backyard...
107
107
Dec 13, 2012
12/12
by
FBC
tv
eye 107
favorite 0
quote 0
liz: call that the fed play, and now to the holiday play. a holiday play you're in love with right now? >> amazon, amazon is a great, really just fabulously run company, and they have it in two directions, the consumer play, the holidays, always their strongest time of the year for the stock, and they have the cloud. nobody talks about that part of the company. the cloud storage. that is such a major under recognized part of the company. liz: breaking news right now. >> okay. liz: u.n. ambassador susan rice is removing herself from the running to be secretary of state. this, of course, in the wake of the big discussion about just exactly what she said in the wake of the benghazi attack that kill our ambassador to iraq, and, clearly, this is a developing story, but soon san rice removing herself from the running to be secretary of state. apparently, it's become a distraction for the president. we'll follow that story as well, back to your play, amazon. i have to push you. they are a company, and i love them, baa they get a sale at any price.
liz: call that the fed play, and now to the holiday play. a holiday play you're in love with right now? >> amazon, amazon is a great, really just fabulously run company, and they have it in two directions, the consumer play, the holidays, always their strongest time of the year for the stock, and they have the cloud. nobody talks about that part of the company. the cloud storage. that is such a major under recognized part of the company. liz: breaking news right now. >> okay. liz:...
237
237
Dec 12, 2012
12/12
by
CNBC
tv
eye 237
favorite 0
quote 0
what works when the fed does this? we know the sectors most sensitive, the largest sector that held up all day. housing related, banks react terrifically to this kind of news. that's where all the s & p gains were. housing and housing related. while we await some sort of resolution in washington. even if it's a bad one. here's the bottom line. the fed chief has once again given you a green light to buy stocks at least from his perch. i'm proud of this guy, proud he's a fed chief. you're only getting a green light because bernanke thinks the fiscal cliff will now be jumped from. the result might very well be what we on cnbc predict. a gigantic loss in jobs in the name of vicious and yes, totally unnecessary forced marched instant austerity. jason in oklahoma, jason. >> caller: hello, mr. cramer. booyah from oklahoma city. >> man, do we ever love oklahoma city. we love oklahoma. i miss it. let's get back down there and do another show. cane get there sooner enough? go ahead. >> caller: planned asset sales completed by th
what works when the fed does this? we know the sectors most sensitive, the largest sector that held up all day. housing related, banks react terrifically to this kind of news. that's where all the s & p gains were. housing and housing related. while we await some sort of resolution in washington. even if it's a bad one. here's the bottom line. the fed chief has once again given you a green light to buy stocks at least from his perch. i'm proud of this guy, proud he's a fed chief. you're...
78
78
Dec 13, 2012
12/12
by
CNBC
tv
eye 78
favorite 0
quote 0
the rally from the fed, of course, relatively short-lived as things turn out. let's get with it, then. here we go. this is now "the halftime report." >> guys, thanks so much. welcome to "the halftime report," four hours to go until the close, and here's where we stand on this day on the street. take a look. we do have red arrows across the board. here's what we're following. fedspeak. what did the chairman really say yesterday to the markets, and are stocks just getting it plain wrong? >>> rally in motion as r.i.m. shares hit a seven-month high. our traders square off on the suddenly surging smartphone maker. >>> google has battered apple over the past six months, and the two stocks are going in very different directions yet again today. which one is your best bet right now? we do have them set up in the wrestling ring here for the battle royale. our traders for the hour, josh, joe, stephanie, jon, which one is your best bet now? because they've been going in opposite directions. >> they are. apple up 31%, google up 9% but that doesn't matter because more recen
the rally from the fed, of course, relatively short-lived as things turn out. let's get with it, then. here we go. this is now "the halftime report." >> guys, thanks so much. welcome to "the halftime report," four hours to go until the close, and here's where we stand on this day on the street. take a look. we do have red arrows across the board. here's what we're following. fedspeak. what did the chairman really say yesterday to the markets, and are stocks just...
186
186
Dec 11, 2012
12/12
by
KRON
tv
eye 186
favorite 0
quote 0
we're talking about the fed here and all of the programs. they will continue to buy 45 billion a month and long- term treasury. their printing a lot of money over at the fed. >> they are. what they're doing is adding thereto day meeting today in washington d.c. to get some ideas about what they will say tomorrow and down the road about the economy and jobs. inflation on the east and west coasts. they have to come together and they did quantitative besom and infinity. that is the only answer i could come up with. they continue to support our economy by printing money in buying our own dad. it keeps the money lower for your mortgages. >> the feds have about three trillion and are expected to have over four trillion next year. are the fed's printing 34 trillion dollars and holding on to that money? what does that mean? >> simi it means it is a lower cost of money -- to me. maybe the to refinance your home or start a small business. as we consume products it creates a situation where the cost of money creates inflation. the cost of a soda goes u
we're talking about the fed here and all of the programs. they will continue to buy 45 billion a month and long- term treasury. their printing a lot of money over at the fed. >> they are. what they're doing is adding thereto day meeting today in washington d.c. to get some ideas about what they will say tomorrow and down the road about the economy and jobs. inflation on the east and west coasts. they have to come together and they did quantitative besom and infinity. that is the only...
28
28
tv
eye 28
favorite 0
quote 0
morgan participating with with the fed why did everybody last laugh when we asked that question well you know i think look i think he deserves credit for that point by all published accounts who are not involved in that but the new york fed has never disputed that he was asked to come in and buy buy bear stearns with government assistance the new york fed offered up so i think it is kind of hard to hold them to account for this. and i wish on the bear stearns lawsuit i mean on the other hand they are a big financial situation they have a lot of very well paid lawyers they could have protected themselves from these types of liabilities and the deal documents and maybe was too rushed i don't know but they apparently didn't do that i do wish that there would be more actions braced against the brought against the individuals those opposed to get this had this kind of situation six specially problematic since you were in chains bought the problems they didn't initiate them themselves and the people of yours turns who actually involved i don't think have been sued and how are you going to
morgan participating with with the fed why did everybody last laugh when we asked that question well you know i think look i think he deserves credit for that point by all published accounts who are not involved in that but the new york fed has never disputed that he was asked to come in and buy buy bear stearns with government assistance the new york fed offered up so i think it is kind of hard to hold them to account for this. and i wish on the bear stearns lawsuit i mean on the other hand...
220
220
Dec 12, 2012
12/12
by
CNBC
tv
eye 220
favorite 0
quote 0
the fed -- press briefing. the fed will announce new bond purchases. operation twist expected to expire at the month's end. the news conference starts at 12 clock p.m. eastern. >>> pleased to be joined by ira jersey, director of u.s. interest rate strategy at credit suisse. ira, good morning. >> good morning. >> what's priced in ahead of the fed's statement tonight? >> yeah. the market widely expects that the federal reserve will continue the purchases. we think basically exactly as they've been buying the long end of the treasury market today. but the balance sheet will expand. so that means that while today they're only expanding the balance sheet about $40 billion a month, the balance sheet will expand by about -- by $85 million a month starting january 2. >> what kind of impact that will have on rates? we've seen the cross currents in the past where despite the huge source of demand into the market, taking up a lot of the supply, better growth prospects cause a backup. what do you think will happen? >> yeah. you know, a lot of people are looking at
the fed -- press briefing. the fed will announce new bond purchases. operation twist expected to expire at the month's end. the news conference starts at 12 clock p.m. eastern. >>> pleased to be joined by ira jersey, director of u.s. interest rate strategy at credit suisse. ira, good morning. >> good morning. >> what's priced in ahead of the fed's statement tonight? >> yeah. the market widely expects that the federal reserve will continue the purchases. we think...
249
249
Dec 12, 2012
12/12
by
CNBC
tv
eye 249
favorite 0
quote 0
has the fed run out of firepower. joining us from washington, the u.s. economics editor, economist and cnbc contributor. good to see you. >> hi. how are you. >> the fed is running out of firepower. what will they do as a result? >> i think the consensus, they will take the $45 billion a month of treasuries they're buying through "operation twist" and convert that to quantitative easing. i would look to two possible things, instead of taking that $45 billion of "operation twist" and use it for treasuries, maybe they use nmore mortgage back securities and many came out and said you get more bang for your buck and bullish for the market. >> are you going to talk about their commitment to keep interest rates low until the end of time? >> here's what i think might be interesting, michelle. a lot of people at the fed aren't happy having a specific date out there. there's an active discussion right now they should replace that date with a number on the unemployment rate. let's keep rates low until unemployment is 6 1/2%. tha
has the fed run out of firepower. joining us from washington, the u.s. economics editor, economist and cnbc contributor. good to see you. >> hi. how are you. >> the fed is running out of firepower. what will they do as a result? >> i think the consensus, they will take the $45 billion a month of treasuries they're buying through "operation twist" and convert that to quantitative easing. i would look to two possible things, instead of taking that $45 billion of...
20
20
tv
eye 20
favorite 0
quote 0
now you've got the price fixing of the fed what the slaw from the general population so it's kind of like a casino gulag where the only hope to get out of it is to win on lotto meanwhile you're playing video games and eating twinkies all day. well moody's has downgraded six point four government ratings for every upgrade in the u.s. and europe even so max european bonds are having their best year since one thousand nine hundred ninety eight returning eleven point five percent through december fourteenth well in this case i must say that for the past four years i've gone on record many many many times that the euro crisis was completely fake now i just based my analysis on one very important issue and that is that germany is a global superpower and that there was no way that this euro project was going to go down no matter what nigel things however you read into the next paragraph in this article and they do point out once again why are the. bonds moving to the opposite of what the rating agencies say well that central bank revolution max central banks buying unprecedented amounts of
now you've got the price fixing of the fed what the slaw from the general population so it's kind of like a casino gulag where the only hope to get out of it is to win on lotto meanwhile you're playing video games and eating twinkies all day. well moody's has downgraded six point four government ratings for every upgrade in the u.s. and europe even so max european bonds are having their best year since one thousand nine hundred ninety eight returning eleven point five percent through december...
16
16
tv
eye 16
favorite 0
quote 0
morgan did the fed a favor even though it may not have been good for shareholders what does that say about the relationship between government regulators and the big banks the bank would do the fed a favor that maybe wasn't even good for shareholders. this is when i talk about this in the book you know the f.t. i see deals with troubled bags that we insure we have for decades we have very strict rules. and we discuss resolution and we don't put government money and we don't keep them up when we run them through a government controlled bankruptcy pretty sickly we go out for competitive bidding there are all sorts of special rules of modern procedures the company by this so it is that transactions always troubled me i've never understood we were you know we weren't in a crisis was march two thousand and eight there's never going to get analysis of why the new york fed. thought it was systemic that there was some broader rationale because as you say they they didn't what would be the normal market mechanisms work they did this i don't think they put it out for bid shareholders some fuel
morgan did the fed a favor even though it may not have been good for shareholders what does that say about the relationship between government regulators and the big banks the bank would do the fed a favor that maybe wasn't even good for shareholders. this is when i talk about this in the book you know the f.t. i see deals with troubled bags that we insure we have for decades we have very strict rules. and we discuss resolution and we don't put government money and we don't keep them up when we...
71
71
Dec 11, 2012
12/12
by
FBC
tv
eye 71
favorite 0
quote 0
is the fed actually doing more harm than good? federal reserve policymakers meeting today and tomorrow to discuss more monetary policy. now, it's the last time they get together this year, and some say get ready for the launch of qe4 potentially as soon as tomorrow. that news made investors happy today with the dow rising for the fifth day in the row. s&p ending at the best level since election day. joining me the federal reserve governor wayne engle. governor, thank you for being with us. doing more harm than good by putting more money in the system? there's a law that diminishing returns that kicks in. >> well, it doesn't have to be that way. it is that way somewhat because the fed is paid that 25* -- 25 basis points for banks to hold sterile rereceivers, and the regulatory thrut is don't make loans. make loans, criticize them, and so the hassle over regulatory restraint on lending and paying to excess reserves has left us with not a very effective monetary policy at this time. tracy: right because if i'm a bank, why lock into a
is the fed actually doing more harm than good? federal reserve policymakers meeting today and tomorrow to discuss more monetary policy. now, it's the last time they get together this year, and some say get ready for the launch of qe4 potentially as soon as tomorrow. that news made investors happy today with the dow rising for the fifth day in the row. s&p ending at the best level since election day. joining me the federal reserve governor wayne engle. governor, thank you for being with us....
16
16
tv
eye 16
favorite 0
quote 0
meaning they could get in but there was no way to get out because the fed is the bond the big buyer in the bond market they are pretty all this money they're buying bonds they're buying mortgages they have trillions now they're back she is going to grow now by a trillion dollars a year how can they possibly withdraw that liquidity how can a cell wall those bonds and all those mortgages who's going to buy them right now peter were saying the same thing all over the world the central banks keep going down this suicidal path bank of japan just announce or they have a new leader going to buy quadrillion and bad debt they want to lower their currency they want to lower their interest rates again this is been going on for years now you correctly called it brilliant book and crash proof and this will and it seems to me there is a dead certainty at one hundred percent guarantee that the the end result of this will be a currency collapse yes or no well the currencies will go down dramatically relative to gold and some currencies will go down quite a bit relative to other currencies but at some
meaning they could get in but there was no way to get out because the fed is the bond the big buyer in the bond market they are pretty all this money they're buying bonds they're buying mortgages they have trillions now they're back she is going to grow now by a trillion dollars a year how can they possibly withdraw that liquidity how can a cell wall those bonds and all those mortgages who's going to buy them right now peter were saying the same thing all over the world the central banks keep...
20
20
quote
eye 20
favorite 0
quote 1
morgan participating with with the fed why did everybody last laugh when we asked that question well you know i think look i think he deserves credit for that point by all published accounts who are not involved in that but the new york fed has
morgan participating with with the fed why did everybody last laugh when we asked that question well you know i think look i think he deserves credit for that point by all published accounts who are not involved in that but the new york fed has
135
135
Dec 11, 2012
12/12
by
KTVU
tv
eye 135
favorite 0
quote 0
the fed meeting to start today. however, we will receive the announcement from the fed tomorrow, perhaps around 1:00 or so wednesday. but, the idea is that risk assets, both equities and metals, commodities mostly, continue to melt higher with the idea that the fed is going to continue to monetize its debt and supply excess reserves to the economy. > what about tax management? what are you seeing with investors and traders trying to avoid that fiscal cliff, although potentially that could happen next year? > > we have seen two big trades really, angie. first, last week gold came off about $50 an ounce. it was rumored that hedge funds specifically were exiting long positions ahead of year-end to meet both investor redemptions as well as a number of other tax-related issues. secondly, the corporate bond market has been very busy over the last couple of weeks. corporates are issuing debt at record low yields, turning around and using that capital to pay out special dividends to shareholders. costco and home depot have
the fed meeting to start today. however, we will receive the announcement from the fed tomorrow, perhaps around 1:00 or so wednesday. but, the idea is that risk assets, both equities and metals, commodities mostly, continue to melt higher with the idea that the fed is going to continue to monetize its debt and supply excess reserves to the economy. > what about tax management? what are you seeing with investors and traders trying to avoid that fiscal cliff, although potentially that could...
96
96
Dec 13, 2012
12/12
by
FBC
tv
eye 96
favorite 0
quote 0
and the fed, a lot of people know this that the fed already owns about a trillion dollars worth of federal 30-year treasury securities on its book and it will now purchase 40 billion more a month. that is fancy way of saying what we're doing right now, melissa, we're monetizing our debt. melissa: yeah. >> treasury department is issuing the debt and federal reserve is purchasing the debt and purchases that debt by printing money. melissa: nariman, a lot of people expected before the announcement today they would say they're backing off. instead they said they will target the unemploymt rate, you know as if this would give them license to go on morph longer. were you surprised and do you think it's a good idea? do you think steve is right that we're just monetizing debt? >> let's start off with, no we were not surprised. we pretty much expected him to do what they ended up doing. i don't think --. melissa: targing unemployment rate? you thought they were going to do tt part? >> oh, yes, absolutely. the only issue what was the threshold they were going to pick. we pretty much guessed that it
and the fed, a lot of people know this that the fed already owns about a trillion dollars worth of federal 30-year treasury securities on its book and it will now purchase 40 billion more a month. that is fancy way of saying what we're doing right now, melissa, we're monetizing our debt. melissa: yeah. >> treasury department is issuing the debt and federal reserve is purchasing the debt and purchases that debt by printing money. melissa: nariman, a lot of people expected before the...
21
21
tv
eye 21
favorite 0
quote 0
and the fed as regulator could let the market decide but now. all right well thank you so much i appreciate you being on the show a remains we can't get into i don't have time i do want to know how the fed's policies have helped unemployment but want to save that for another day thanks so much barry eichengreen professor of economics at u.c. berkeley author of exorbitant privilege thank you. all right it's time now for word of the day where we break down a term for our smart viewer but just perhaps not the expert and given our conversation with professor i can bring about the international monetary system and the role of the u.s. dollar the word of the day is that you've got to get it dollar index now there is certainly plenty of mention of the dollar index on mainstream financial outlets. the dollar index has hit a month in the dollar index and the last six months has dropped fourteen percent you know the dollar index is a great benchmark everybody has grown very accustomed to it i've been looking at it for years. ok so it's always use to reall
and the fed as regulator could let the market decide but now. all right well thank you so much i appreciate you being on the show a remains we can't get into i don't have time i do want to know how the fed's policies have helped unemployment but want to save that for another day thanks so much barry eichengreen professor of economics at u.c. berkeley author of exorbitant privilege thank you. all right it's time now for word of the day where we break down a term for our smart viewer but just...